Iraq appears to have firmly entered theranks of upper middle-income countries in 2012, havingexperienced strong economic growth following theestablishment of a civilian elected government in 2005-06.In 2012 the years of growth culminated in a per capita GDPof 2472 constant 2005 US$. This three-volume poverty andinclusion assessment provides the first in-depth analysis ofIraq's economic and social development during theperiod of 2007 to 2012. Volume 1 is an overview of theeconomic climate in Iraq, providing brushstroke descriptionsof its poverty reduction plans, labor markets, public healthdata, and education focal points. Volume 2 is a nine-chapterreport on the years between 2007 and 2012, a period ofrelative stability in Iraq. 2007 marks the end of sectarianviolence, which lasted until 2012, prior to the militancyand insurgency in the northern governorates of the summer of2014. The country has been a nexus of conflict and fragilitysince the early 1980s, and has experienced multiple types ofconflict: insurgency, international war, sectarian strife,persistent terrorism, regional fragmentation, and spilloversfrom conflict in other countries. What should have been apromising endowment of natural resources of land, oil andgas, as well of human capital, did not provide thefoundation for poverty reduction and shared prosperity. Therealization of potential was confounded by war andrepression. A key priority of the Government of Iraq since2005-06 has been to fill the huge knowledge gap in terms ofa deeper understanding of the state of the economy and of arange of socioeconomic indicators of welfare with theobjective of building a strong evidence base for effectivepolicy making. The rich analyses presented in this report gowell beyond counting the poor. It gives an incisiveunderstanding of the multi-layered development challengesfaced by the nation, which serves as a testament to thecommitment of the Government of Iraq, the staff of theCentral Statistics Office, and the Kurdistan RegionStatistics Office. It will form the basis for a new strategyfor Iraq's development and ensure broad-based welfareimprovements for the population. Volume 3 consists of nineannexes and nine references in the forms of tables, boxes,and equations used in the methodologies.